Kentucky bill (H 220) would tax e-cigs at 40%

[Bill Godshall]

Kentucky bill (H 220) would tax e-cigs at 40%, increase cigarette tax from $.60 to $1.60, increase snuff tax from $.19 to $.51/unit, and increase OTP tax from 15% to 40%
14RS HB220

This bill has little chance of enactment, but KY vapers and vendors should actively oppose it (to prevent e-cig taxation in the future).

 

[RaceGun59]

My main concern is defining the hardware used to deliver my nicotine as a tobacco product. The battery device an tank that holds my juice are not made of any tobacco products. they are made of stainless steel, glass, plastic, and wire. No tobacco products what so ever in those. The actual battery and electronic circuit board were made for the flashlight industry. the tanks I use are purchased with no juice in them so no "tobacco product" there. The hardware my wife uses to vaporize her ZERO nicotine juice, so no tobacco product there.




The liquid that I use is composed of PG/VG/H2O/nicotine.

Vegetable Glycerin base is derived from vegetables and PG liquid which is a Propylene Glycol base, used in food flavourings and also in fog machines. H2O is distilled water, so no tobacco product there. The nicotine in my juice is extracted from tobacco, but it could as well be extracted from any plant in the nightshade family. These nicotine could be from eggplants or tomatoes. It just so happens that tobacco has the highest concentration of nicotine of those plants. So as you see, the only part of my nicotine delivery device that is connected to tobacco is the nicotine in the liquid juice. Applying the logic of this bill, then nicotine gum, nicotine patches, and nicotine nasal inhalers must also be classified as 'tobacco products".

This is the email I sent to everyone on the committee and to my State Representative and State Senator.


The section of the bill requiring retailers to purchase only from licensed tobacco distributers is going to give the existing licensed distributers an unfair business advantage. Incase you haven't noticed, several big tobacco companies have purchased several small to midsize electronic cigarette companies. So these big tobacco companies will already have the groundwork in place to step in and corner the market.

This added tax and price increase of hardware will force myself, and many other vapor, to stop spending money at local retailers and order our hardware online. Or perhaps we will be like those in states with high cigarette taxes and drive to states with lower taxes to buy our products.

 

[Bill Godshall]

Anther bill (HB 319) would ban e-cig sales to minors and would tax e-cigs at 15%, referred to House Committee on Licensing and Occupations.
14RS HB319

 

[Bill Godshall]

HB 319 at
14RS HB319
was referred to the KY House Appropriations & Revenue Cmte at
Committee Members

HB 319 was also referred to the KY House Licensing and Occupations Cmte at
Committee Members

While a 15% tax isn't that much, it would set a terrible precedent especially since Kentucky has very low taxes on cigarettes and OTP.

KY vapers and vendors should contact members of these two Committees urging them to reject HB 319.

 

[Bill Godshall]

In his 2014 budget proposal, Kentucky Governor Steve Beshear has proposed taxing e-cigs at 20%, increasing the cigarette tax from $.60 to $1/pack, and increasing OTP tax from 15% to 21%.
Kentucky.gov: - 20140204taxreform


This makes it even more important that KY vapers and vendors aggressively oppose all of these tax proposals on e-cigs. If KY enacts a tax on e-cigs, virtually every other state could follow their lead.